NatRoad is urging both the NSW and Australian Governments to swiftly reject any proposals for a carbon tax on trucks.
This comes in response to the recent NSW Freight Policy Reform: Interim Directions report, which recommends the consideration of vehicle charges based on carbon emissions; essentially a carbon tax on trucking in Australia.
“This is a recommendation from an independent panel, not current government policy. However, we believe it is vital that all governments immediately rule out this proposal,” NatRoad CEO Warren Clark said.
“A carbon tax on trucks would be devastating to small and medium trucking businesses that are already struggling with rising costs.”
Clark said imposing a carbon tax on trucks would not help with reducing emissions but would instead add unnecessary financial strain on truck businesses.
“This tax would delay the ability of small and family-owned businesses to invest in lower-emission vehicles. It’s a blunt tool that targets the wrong people, particularly regional and long-distance operators, where low-emission alternatives like electric trucks are not yet viable,” Clark said.
NatRoad said that over 90 per cent of trucking businesses in Australia are small, family-run operations, many of which are already grappling with tight margins and rising costs.
“Average profit margins in our industry are just 2 per cent, and we have 26,000 unfilled driver positions threatening supply chains. Adding a carbon tax on top of rising diesel prices, road user charges, and inflation will be the tipping point for many businesses,” Clark said.
“A carbon tax like this would also disproportionately impact rural and regional areas, where long haul freight is critical.”
NatRoad is committed to reducing emissions but argued that this could be achieved through more effective and targeted measures.
The association has proposed a $3 billion Clean Transport Fund to help accelerate the adoption of low-emission vehicles and the development of electric charging and hydrogen refuelling infrastructure.
Additionally, NatRoad is calling for the Australian Parliament to legislate a Low Carbon Fuel Standard to reduce the carbon intensity of liquid fuels, and for all governments to improve access for more productive vehicles to reduce emissions through greater efficiency.
“We need practical solutions, not more taxes,” Clark said.
“With the right infrastructure and support, the road freight industry can transition to net zero in a way that is fair and achievable for everyone.”
While critical of the carbon tax recommendation, NatRoad welcomed several proposals in the report, including immediate action on workforce shortages and road infrastructure improvements.
“We support the recommendations to address the driver shortage by expediting a driver experience license pathway and rolling out National Service Level Standards on roads,” Clark added.
NatRoad will be submitting a formal response to the report in the coming weeks.
